Supply and Demand and Equilibrium Price

Individual Assignment 1 1. presently capitulum out the faulty reasoning in each of the follo lureg situations a. You win a let off, nontransferable ticket to a Sheryl Crow concert. Since the ticket is free and it will therefore cost you nothing to go, you decide to go to the concert. b. You paid nonrefundable tuition of $3,000 to take a 15-week course. Therefore, the opportunity cost of attending tell each week is $3,000 divided by 15, or $200. c. You have purchased 5 premium apples for $1. 99 a pound, but when you get home, you discover they be mushy.Since you paid top dollar for these apples, you decide you have to eat them. 2. Briefly explain why the following statements ar either TRUE or FALSE a. Even though school dormitory rooms are rationed by lottery, these rooms are still affected by economic forces. b. Because the U. S. postal service is a monopoly and Congress sets postal expenses done legislation, foodstuff forces do not determine stamp prices. c. New York metro polis brass auctions taxi medallions that give the right to transport passengers by taxi.Because the government controls the number of medallions, commercialise forces do not determine their price. 3. Indicate whether each of the following statements describes an increase in demand, decrease in demand, change in quantity demanded, increase in come out, decrease in show, or change in quantity supplied in the given trade. a. Store-brand soup prices are cut, trim sales of Campbells soup. commercialise Campbells soup. b. Coffee bean prices smasher an 18-month low following a bountiful harvest. Market coffee beans. c. A summer heat wave leads to higher prices for bottled water.Market bottled water. d. Holiday clothing discounts move on clothing sales. Market clothing. e. Apple introduces a tinier and more powerful iPod model. Market older iPod models. f. The cost of pesticides increases, leading to a rise in the price of soy beans. Market soy beans. 4. Given the following data f or individuals, affiliation the market demand curve and market supply curve for CDs. deal that these are the only individuals in the entire market. Price is per CD. Price $8. 00 $8. 50 $9. 00 $9. 50 $10. 00 $10. 0 Quantity demanded in units per week Mark 3 3 1 0 0 0 Lynn 8 7 6 3 2 1 Jason 6 5 4 3 0 0 Erin 10 9 7 6 4 2 Quantity supplied in units per week Jeff 0 1 2 3 4 6 Beth 2 3 3 4 6 7 Chris 0 1 2 3 5 6 Abby 1 1 2 2 3 5 a. What would be the equilibrium price and quantity in this market? b. Which would there beexcess demand or excess supplyat a price of $8. 00? How much? What about at a price of $10. 00? c. If the price of a CD was initially set at $9. 00 but the price was allowed to adjust, would the price rise or fall? apologise your answer. 5.State the effect of the following events on equilibrium price and quantity of the market given. a. Beetle infestation decimates tobacco crop. Market cigars. b. The Organization for Petroleum trade Countries raises oil export q uotas. Market gasoline. c. Digital image albums become the violence among households spell improved technology reduces the cost of producing digital cameras. Market digital cameras. c. Hurricanes in the Gulf coast cause gasoline supply disruptions while the summer travel season ends. Market gasoline. 6. The graph below shows supply and demand curves for annual medical office visits. Using this graph, answer the questions below. pic a.If the market were free from government regulation, what would be the equilibrium price and quantity? b. target total expenditures on office visits with this equilibrium price and quantity. c. If the government subsidized office visits and pick upd that all consumers were to pay $30 per visit no matter what the actual cost, how many visits would consumers demand? d. What payment per visit would doctors require in order to supply that quantity of visits? e. Calculate total expenditures on office visits under the condition of this $30 co-payment. f. H ow do total expenditures with a co-payment of $30 compare to total expenditures without government involvement? Provide a numerical answer.